If you are considering starting a business in the United States, it’s crucial to have a solid understanding of the costs involved. One important aspect to consider is opening a brokerage account, which can provide you with the necessary tools to invest and grow your business. Vanguard, a renowned investment management company, offers brokerage accounts that cater to the specific needs of businesses. Let’s take a detailed look at the possible costs associated with opening a Vanguard brokerage account.
Account Creation Costs
The first step in opening a Vanguard brokerage account is creating the account itself. Vanguard offers two types of brokerage accounts: the standard brokerage account and the Vanguard Advantage account, which requires a higher minimum investment but provides additional benefits. Here are the costs associated with each:
Standard Brokerage Account
| Account Creation Cost | $0 |
| Minimum Initial Investment | $0 |
Vanguard Advantage Account
| Account Creation Cost | $0 |
| Minimum Initial Investment | $50,000 |
As you can see, the account creation cost is completely free for both account types. However, the Vanguard Advantage account requires a minimum initial investment of $50,000, which makes it more suitable for businesses with a higher capital base.
Trading Costs
Once your Vanguard brokerage account is set up, you may incur trading costs when buying or selling securities. Vanguard offers a variety of investment options, including stocks, bonds, mutual funds, and exchange-traded funds (ETFs). Here’s a breakdown of the potential trading costs:
Stocks and ETFs
| Online Trades | $0 |
| Broker-Assisted Trades | $25 |
Mutual Funds
| Vanguard Mutual Funds | $0 for online purchases |
| Non-Vanguard Mutual Funds | May incur transaction fees |
It’s important to note that while online trades for stocks, ETFs, and Vanguard mutual funds are free, broker-assisted trades come with a $25 fee. In addition, non-Vanguard mutual funds may have transaction fees associated with them.
Additional Costs
Apart from the account creation and trading costs, there are a few other expenses to consider when opening a Vanguard brokerage account:
Account Maintenance Fee
| Standard Brokerage Account | $20 per year |
| Vanguard Advantage Account | $30 per year |
Wire Transfer Fees
| Domestic | $10 |
| International | $35 |
Account Closing Fee
| Standard Brokerage Account | $0 |
| Vanguard Advantage Account | $0 |
Summary of Costs
In summary, opening a Vanguard brokerage account involves the following costs:
– Account creation: $0
– Minimum initial investment: $0 for a standard account, $50,000 for the Vanguard Advantage account
– Trading costs: $0 for online trades (stocks, ETFs, Vanguard mutual funds), $25 for broker-assisted trades, potential transaction fees for non-Vanguard mutual funds
– Additional costs: account maintenance fee ($20/year for standard account, $30/year for Vanguard Advantage account), wire transfer fees ($10 for domestic, $35 for international), no account closing fees
It’s important to remember that these costs are subject to change, so it’s always a good idea to check Vanguard’s official website for the most up-to-date information.
If you’re still unsure about the total costs involved or need assistance in creating a personalized budget for your business, we encourage you to contact Vanguard directly. Their experienced team can provide tailored advice based on your unique requirements and help you make informed decisions when it comes to managing your business investments.
